Nation`s Top Computer Retailer Sold

Computerland Inc., the nation`s largest computer retail chain, said Monday that its business had been acquired by a consortium of investors for an undisclosed amount.

The Computerland network had $408.5 million in total retail sales January through March.

The international chain, which includes more than 800 stores, of which 45 are company-owned, was acquired by a group led by E.M. Warburg Pincus & Co., a New York-based financial services firm.

The group reportedly includes executives from several large retail chains, including Coast-to-Coast, a national chain of hardware stores.

Computerland was owned by a holding company named IMS Associates, of which William Millard, Computerland founder, owned 96 percent.

Insiders say the sale price most likely was $200 million to $300 million. They also indicated that the long legal battle over company stock ``had all been worked out to everybody`s satisfaction`` in the sale.

Millard had been appealing a 1985 court ruling awarding Micro/Vest, an investment group, 20 percent of the company`s stock and $141 million in cash. The sale to the consortium was approved by Millard and Micro/Vest as well as the Computerland board, the insiders said.

Millard had reached an agreement with Micro/Vest about a year ago that the corporation would be sold or taken public while he appealed the case.

Millard moved to the Far East and has been unavailable for comment since he left company management.

Dealers say they have been told that the new owners will keep a ``hands off`` policy. A company spokesman said Ken Waters will continue as president and chief operating officer of the Hayward, Calif.-based chain.

Waters cited the chain`s lead in the industry and its high growth potential as reasons the group considered it an attractive investment. Many observers expect the chain to be taken public before long.

While the chain has been on the block, rumors have surfaced about the sale, usually naming one of the regional Bell holding companies or Bell Canada as a candidate primarily because of their resources and growing interest in the computer industry.

Chicago area Computerland franchisee Dick Danstrom said the sale was positive for the chain.

``Now the corporation can get on with the business of selling computers,`` he said.